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February, 2010
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| Evaluating a Franchise
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Franchising has become more popular and commonplace with every passing year. According to the Small Business Administration (SBA),franchise businesses provide more than 8 million jobs in the United States. The strength in this sector is an outgrowth of the many advantages that are associated with owning a franchise such as:
Availability of continued support;
Training of personnel;
Group advertising;
A sound and proven system for that particular business.
The question
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| Buying a Business Instead of Starting One
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So you’ve made the decision to own a business. Hundreds of people work their way through the same thought process, weighing the costs and benefits of self-employment versus career employment. Yes, there are risks to taking the route of owning your own business; but when youbuy an existing business as opposed to starting one from scratch, you have the best overall chances financially and emotionally of succeeding.
The advantages tobuying a business are less risky where you already have
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| Doing a Business Valuation as a First Time Buyer
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Every entrepreneur that’sbuying a business for the first time is faced with the challenge of determining what the fair price for a given business is. Whether other reasonable parties will disagree,business valuation is equally both an art and science.
Commonly, small businesses are valued at a multiple of cash flow that ranges from one(x) to four (x) times.
There are two important questions that have to be asked:
What is meant by cash flow?
What multiples apply to part
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| Choosing the Right Business for You as a Buyer
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When you are looking to buy a business, it is important to find the right business first before worrying about the right price. Never base your search simply on finding a good deal because you will find yourself ultimately in a place that you don’t want to be.
The price must be considered secondary to your personal preferences relating to how you want to spend your time and energy. Remember that you will be spending between 40 and 80 hours a week at the business you choose to buy.
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| Having Your Business Family Operated
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When you are looking to buy or sell a business, a common area of dispute comes from involving family members. In some cases, some family members will contribute a great deal of work without being paid a single penny at the same time that others may be doing little or no work while receiving large sums of money or services.The first situation calls for reductions in SDC, where as the second calls for an increase, both of which entail somewhat arbitrary assessments.
Having Mutual Trust for the
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| When to Begin Due Diligence as a Business Buyer
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The intangible that connects the right business to the right price is due diligence. This refers to the period of time during that the buyer is free to examine the seller and their business. Due diligence also refers to the efforts made by the seller toevaluate the buyer’s financial statement and resume – the latter is particularly important if the seller will be carrying a note from the buyer or if the seller is to remain on a long-term lease assigned to the buyer.
Due diligen
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| Asking Yourself the 7 Questions When Looking to Buy a Business
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If you are looking to become a successful business owner, you need to be able to ask yourself if you have what it takes. First of all, if you are looking tobuy a business just to be able to pay your bills and have no debt; then don’t bother moving ahead. When you make the decision to buy a business, your goal should be to become the leader in your industry, someone that is an expert at what they do in their field.
Being a business ownershould mean that you realize that there is an opp
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| How to Approach Selling Your Business
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When you are a selling your business, you must define exactly what is being sold to determine how to price and structure the sale, understand how thebuyer will analyze the business sale opportunity and plan a win-win tone for discussion with that buyer. The overall value to the seller in a sale is the combination of the price and factors.
Contributing to the Overall Value
The form of the consideration received at the closing of the business sale (stock, cash, combination, etc.), tax trea
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| Implementing an Identity for Your Business
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All businesses have an identity, regardless of whether they control or effectively manage it. You can increase the efficiency of your business by concentrating on developing a desirable identity to project to customers, use as a tool to prove internal direction and orientate strategic development.
Types of Business Identities
Remember that a business identity program embraces and manages a valuable asset. There are three identity types that your business can be classified.
Monolithi
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| Identity’s Omnipotent Scope in Business
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Every business has a unique identity that can be used as a valuable asset. Regardless of the size, all businesses currently face challenges to their identity from a myriad of areas. There are three problem areas regarding identity management.
Ever-Similar Products and Services
This has led to customers purchasing from businesses on an emotional basis – a projected sense of corporate personality and rapport can boost business. But how do you differentiate one product in an industry fro
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